Valaris Ltd (VAL)
Return on assets (ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 373,400 | 1,074,900 | 1,023,200 | 844,200 | 865,400 | 59,400 | 120,800 | 261,800 | 175,300 | 173,800 | 45,000 | -3,629,800 | -4,500,000 | -4,598,600 | -5,215,000 | -2,759,200 | -4,855,500 | -5,000,100 | -4,526,300 | -3,019,800 |
| Total assets | US$ in thousands | 4,419,800 | 4,333,400 | 4,415,600 | 4,354,400 | 4,322,200 | 3,484,900 | 3,088,400 | 2,951,200 | 2,860,300 | 2,821,200 | 2,760,800 | 2,637,700 | 2,609,200 | 2,602,500 | 2,601,700 | 11,946,900 | 12,873,200 | 12,911,200 | 13,038,900 | 14,025,100 |
| ROA | 8.45% | 24.81% | 23.17% | 19.39% | 20.02% | 1.70% | 3.91% | 8.87% | 6.13% | 6.16% | 1.63% | -137.61% | -172.47% | -176.70% | -200.45% | -23.10% | -37.72% | -38.73% | -34.71% | -21.53% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $373,400K ÷ $4,419,800K
= 8.45%
Valaris Ltd's return on assets (ROA) has shown significant variability over the past few years. The company experienced negative ROA figures for most of 2020 and the first half of 2021, indicating that the company was not generating sufficient profits relative to its assets during that period.
However, there was a drastic improvement in ROA starting from the second half of 2022, with the company achieving positive ROA figures. This turnaround suggests that Valaris Ltd's management may have implemented effective strategies to improve the company's profitability and efficiency in utilizing its assets.
From 2023 onwards, the company's ROA continued to increase steadily, reaching its highest point of 24.81% by September 30, 2024. This positive trend indicates that Valaris Ltd was able to generate more profit per dollar of assets invested, which is a favorable sign for investors and stakeholders.
Overall, the improving trend in Valaris Ltd's ROA from negative figures to positive territory demonstrates a positive shift in the company's operational efficiency and profitability. It suggests that the company may have successfully navigated through challenging times and is now delivering better returns on its assets.
Peer comparison
Dec 31, 2024